First archive button is dumb, it actually creates a label called [imap]/archive.

Sending messages is dumb, it actually creates a label called 'Sent Messages'

Deleting messages is dumb, it actually creates a label called 'Deleted Messages'

I don't understand how can the iOS version work well, while the Lion version behaves completely different. Does anyone know how can I get around these problems? My current solution is to use Sparrow. I have also tried looking around the stackexchange websites (superuser and apple), Apple forums, MacRumors, Google, etc..

3 Answers
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You need to go in Mail to the folders under your Gmail account and on Trash/Sent Messages/Deleted Messages/Junk select each one of these and then in Mail choose Mailbox > Use This Mailbox For the corresponding Draft/Sent/Trash/Junk.

I originally did this from a very clear set of instructions that I cannot find now. However another set are here.

I also go to the web Gmail Settings and turn off the Show in IMAP check box for the All Mail tag. This means that I only sync one copy of each mail to the Mac.

They at least discuss what the different choices do alongside their suggestions, which allows you to pick and choose what features you want.

They also show you how to set up IMAP folders with Gmail Drafts, Sent Mail, Trash, etc so you don't have duplicates there (essentially, select the mailbox in Apple Mail. Mailboxes >> Use this mailbox for >>)

This article at MacWorld has some really good advice. Be aware that it was written some time ago and the features that it explains as "advanced IMAP controls" and "experimental" have now been promoted to the general user preferences by Google.
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Wheat WilliamsFeb 28 '12 at 23:43

User fails to grok Mail 5 on Lion with Gmail? The solution is to use Sparrow.

If you go into System Preferences under Mail, Contacts & Calendars; setting up using Exchange for active sync works better than using the gmail setting in some cases. You might try the other setting if your current one is failing you.